Section 194J of the Income Tax Act mandates Tax Deducted at Source (TDS) by certain payers on payments made to residents for professional services, technical services, royalty, director's remuneration, and non-compete fees. The existing section code 194J (i.e. Fees for Professional or Technical Services) has been sub-divided now into two sections, 194J (a) and 194J (b), effective from 7th August 2020. u/s 194J (a) of the Income Tax Act, is related to TDS deduction on fees for Technical Services, and u/s 194J (b) of the Income Tax Act is related to TDS deduction on fees for Professional Services. Every person excluding an individual or a HUF, making payment to a resident for notified services, will be covered u ... What are specific cases where Section 194J is applicable? TDS deduction u/s 194J is also applicable to the payments made to hospitals, HR consultancy, Recruitment agencies, and advertising agencies. Section 194J of the Income Tax Act in India relates to Tax Deducted at Source (TDS) on payments for professional and technical services. This section requires tax deduction from payments made for certain professional services, technical services, royalties, and fees paid to directors.
